Analysts are Downgrading These 5 Stocks

2. Freeport-McMoRan Inc. (NYSE:FCX)

Number of Hedge Fund Holders: 56

Scotiabank trimmed its ratings for Freeport-McMoRan Inc. (NYSE:FCX) from “Outperform” to “Sector Perform” on Friday, November 11. Analyst Orest Wowkodaw mentioned a range of factors that could impact copper prices this year.

The factors putting downward pressure on the prices include rising interest rates, elevated energy costs, a strong U.S. dollar, Covid restrictions in China and geopolitical uncertainty amid the Russia-Ukraine war.

Separately, investment management firm ClearBridge Investments also discussed Freeport-McMoRan Inc. (NYSE:FCX) in its third-quarter 2022 investor letter, stating:

“Seeing better opportunities elsewhere in the materials sector, we exited our position in Ecolab and added to copper producer Freeport-McMoRan Inc. (NYSE:FCX), which supplies a much-needed resource for the energy transition, and specialty chemical company Linde (LIN), which has historically held onto pricing gains it has achieved following increases in energy costs. We think this pricing power should protect profitability during the acute inflationary phase and potentially lead to margin expansion when cost pressures abate. We think this pricing power should protect profitability during the acute inflationary phase and potentially lead to margin expansion when cost pressures abate.”